Part 1: Prepare a spreadsheet using Excel or a similar program in which you compute the following for each proposed location.

• Accounting rate of return on investment
• Payback
• Net present value
• Internal rate of return

The Better Toast Company, Inc.

The Better Toast Company, Inc. is considering expanding its international presence. It sells 25% of all the toaster ovens sold in the United States but only 3% of the toaster ovens sold outside of the United States. The organization believes that it can sell more of its product if it has a production facility located overseas. Estimates concerning two possible locations, Phnom Penh, Cambodia and Mandalay, Myanmar follow:

Possible Location	Phnom Penh, Cambodia	Mandalay, Myanmar
Initial cash outlay	$4,500,000	$2,500,000
Useful life	20 years	20 years
Net cash inflows excluding depreciation	$1,005,000	$785,000
The cost of capital	9%	9%
Tax rate	40%	40%

Part 2: Utilizing Word or another word processing software program, prepare a written report for the Board of Directors. The intended audience is clear from the salutation and the language used throughout the report.

• Include a detailed and thorough explanation of the conclusion you reached regarding the feasibility of each proposal supported by the calculations prepared in Part 1.
• Explain at least five non-financial items (e.g., culture, language, etc.), which may impact the perceived desirability of each location.
• Select the one location you recommend the Board invest in. Explain your rationale in precise and detailed language.